Odds looking good for expanding slots
Some lawmakers suggest it might be time
to look at the financial rewards of expanded gaming.

By Breanne Gilpatrick
© 2007 Miami Herald
bgilpatrick@MiamiHerald.com
Tuesday, April 10, 2007

TALLAHASSEE - After years of antigambling battles, Florida's property-tax crisis and shrinking state budget have opened the door for gambling proponents, who persuaded a Senate Committee on Monday to approve expanding slot-machine gambling throughout the state.

To the Senate Regulated Industries Committee, the proposal to allow expansion of so-called ''video lottery terminals'' to about 25 existing parimutuels was a financial issue. Senators talked about the money it could raise -- up to $2 billion a year -- and planned ways to spend the money before it even gets to the full chamber for a vote. And in the 25-minute debate, there was almost no mention of the money's connection to gaming.

Most of the video lottery machines look and play like the Vegas-style slots that are now spinning in Broward County parimutuels. But with so-called Class II machines, players bet against each other and not the house, resulting in lower payouts.

FIGHTING CHANCE

For gambling proponents such as Republican Sen. Jim King of Jacksonville, the near-unanimous vote suggests the bill has a chance of clearing a Senate where even conservative Republicans are rethinking their opposition.

Other proposals to loosen regulations at Broward's new casinos also are moving through the Legislature with few fireworks this year, a change of luck in a state where most moves have faced stiff odds.

'It was not only `no,' it was 'hell no,' '' said King, a former president of the Senate.

So what changed?

First, the state's sales-tax-fueled budget is slowing with the economy.

Then, House Speaker Marco Rubio of West Miami proposed scrapping some property taxes in favor of raising money through sales taxes. Rubio said the plan gives people a choice over how much they spend in taxes by regulating their consumption.

Senators such as the Democrats' leader, Steve Geller of Cooper City, are using Rubio's words against the House Speaker. Geller and others point out that slot-machine proceeds are the ultimate in consumption taxes -- you pay only if you play. And he said Monday that some of the proposed gaming revenue could be used to reduce property taxes levied by school districts.

The success of existing casinos has made the changes more palatable. Broward's casinos will pay about $50 million in taxes in the next fiscal year and more than $300 million a year within five years, according to state estimates.

''In the past people said if you have slot machines there will be prostitution, alcoholism, communism, socialism, fascism, whatever,'' Geller said. ``The fact is we have [slots]. . . . And if we have them we might as well get some revenue out of them.''

It's unclear how gaming proposals will be received as they move forward.

Senate President Ken Pruitt, a slots proponent in previous years, wouldn't say if he will back the bill, but noted that he likes to follow the lead of the committees.

Gov. Charlie Crist wouldn't rule out approving the gambling measure, though he said he'd have to look at the details.

And the proposal hasn't yet had a hearing in the House, traditionally the more anti-gaming chamber.

Asked if he'd prevent the bill from being heard, Rubio said he wouldn't. But he noted that the House speakers who will follow him, Ray Sansom and Dean Cannon, don't have an appetite for gambling.

UNPOPULAR

In previous gaming votes this year, legislators have pointed out that voters still don't like the idea of gambling, no matter how much money it raises in taxes.

'We're going to have to go back home to our constituents and look them in the eye and say, `Yes, I know that you probably voted against the expansion of gambling,' '' King said. ```But we weighed that option versus the fact that we wouldn't have to raise taxes.''

Miami Herald staff writer Marc Caputo contributed to this report.